But location is a limited resource - and thus, the cost of living (such as real estate) in a location that is of such convenience would be higher than a further

But location is a limited resource - and thus, the cost of living (such as real estate) in a location that is of such convenience would be higher than a further away location. Therefore, you're just traded the time for money. WFH solves both problems at once. AKA, it increases efficiency of the entire system.